Becoming a life insurance agent requires more than knowing the difference between term life insurance and whole life insurance. Before you can start to work at a life insurance agency, you'll need life insurance agents education and training. Whether you'll be working for life insurance brokerage companies or independent life insurance brokers, proper education and training are essential.

Life insurance agents education and training will help prepare you for any licensing exams you'll need to take. A formal degree or enrolling in an insurance school can also help on your road to becoming a life insurance agent. So before you set foot into a life insurance brokerage office, get the education and training you need to make it as a life insurance agent:

1. Obtain a formal degree from an accredited college or university before you begin applying to life insurance agencies.
2. Enroll in an insurance school to receive life insurance agents education and training.
3. Take advantage of internships offered by many life insurance agencies.
   

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Receive a degree in insurance as a first step in life insurance agents education and training

While a formal degree is not mandatory for life insurance agents, some colleges offer a degree in insurance that can be beneficial to those who wish to pursue a career as a life insurance agent. Combining general studies with more specific courses, including those covering life insurance, a bachelor's degree in insurance can be a major part of life insurance agents education and training.

I recommend: The curriculum for the bachelor's of science degree in insurance offered by Indiana State University includes a course in life insurance as well as an insurance internship. Excelsior College offers a bachelor of science degree in insurance program which allows a student to choose an area of concentration, one of which is life/health insurance.

Learn what every potential life insurance agent needs to know from an insurance school

The formal education route may not be for everyone. For those individuals, enrollment in an insurance school may be the way to go. Insurance schools offer intensive training for life insurance agents through classroom settings, interactive CDs or online courses.

I recommend: The Florida Insurance School has a 40-hour life insurance course as well as exam preparatory courses and even tutorials on CD. ABTrainingCenter.com offers self-study, online or classroom courses for life insurance agents and brokers.

Get hands-on experience by becoming an intern at a life insurance agency

Few things can prepare you for a career in any field like hands-on experience. Through an internship at a life insurance agency, you'll have the benefits of working directly with a life insurance agent and learn the ins and outs of the life insurance business. Internships can be a vital part of life insurance agents education and training.

I recommend: New York Life has internships specifically for life insurance sales, an intensive program that exposes interns to all aspects of being a life insurance agent and even prepares them for running their own business. Allstate Insurance Company conducts a summer internship program offering competitive pay, work experience and possible full-time opportunities with the company upon completion of the internship.

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Helpful advice for making the most of this Guide

• •  Many life insurance agencies offer continuing education classes and seminars for life insurance agents.
• •  Every life insurance agent or life insurance broker is required to have a license. Requirements for insurance licenses vary by state, but usually include some insurance-related courses and the successful completion of several exams. Check your state requirements.

Protecting your company's assets requires seeking the services of life insurance agents and brokers. Knowing the type of insurance your business needs determines which insurance agency to select. Businesses carry the standard policies such as liability, property and business interruption insurance. However, insuring key players is essential. Your corporate executives are valuable tools to successfully running your business. As a result, an executive loss is a risk to the livelihood and momentum of the company.

Consider your time when choosing between an independent or company life insurance agent. A life insurance brokerage works with many different companies, often conducting the legwork for your benefit leaving you to run your business. If you prefer building a relationship with one insurance company, research numerous companies for the best benefits. Whether you choose an agent or a broker, be aware of the following:

1. Know your long-term business goals and which employees require coverage.
2. A life insurance company agent is limited to company products while brokers can provide options across a variety of providers.
3. All states require insurance licensing, so focus on the relationship between the provider and the life insurance companies as well as the industry designations your prospective agent or broker holds.

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Research business-focused life insurance agencies and how much coverage you need

Select insurance providers who specialize in products specific to business needs. Term life insurance is a viable option for insuring business executives. Since employees are not a permanent asset, as the policy owner and beneficiary, you set the term length and the amount of coverage. However, depending on the executive, a whole policy with an investment feature is attractive as well.

I recommend: Utilize the Life Stages insurance product tool at the Insurance Information Institute to decide the type of life insurance you need. Knowing how much coverage you need is just as important. The Life and Health Insurance Foundation for Education provides a life insurance estimation tool to assist you in selecting the appropriate amount of insurance coverage.

Determine if a life insurance agency or a life insurance brokerage firm would work best

A relationship with an insurance provider can last for many years. Therefore, it is necessary to understand the type of participation you need from your insurance broker or agent.

I recommend: The National Association of Insurance and Financial Advisors offers a listing of the best agents among their company-sponsored peers and in the industry. Reviewing the list of life insurance brokers at the National Association of Independent Life Brokerage Agencies encourages building a solid relationship regardless of the insurance company you choose now or in the future.

Investigate the service records of the life insurance agents or brokers in your area

Each state has set requirements for obtaining an insurance sales license. Be sure that the provider you select holds a license to sell insurance products in your state and conducts services in an ethical manner.

I recommend: Inquire with Spectrum Insurance Group to find a business life insurance provider licensed in your area. Select an insurance agency with confidence when you research the service record of the company and its sales agents at National Association of Insurance Commissioners.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Life insurance plays an important role in estate planning and asset protection. Make your choices in conjunction with your other investments. An umbrella policy that encompasses all of your insurance needs will reduce costs and ensure proper coverage regardless of the unexpected event.

The role of life insurance agent is to assist you with your life insurance planning, but there are many different kinds of life insurance agents and they can work in different ways. It is important to learn about common terms used to describe life insurance agents and their role in helping you with your insurance needs. Life insurance agents can work with whole or term life insurance or with annuities and securities, and some can help with personal and business financial planning. Life insurance agents can also vary in their education and licenses obtained. The following are some common key terms used for life insurance agents.

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Underwriting

The process of underwriting insurance is to analyze information and determine the level of risk for insuring someone. This process can help to classify the amount of insurance a person qualifies for and the premium required to purchase the insurance. The life insurance agent's role in the process of underwriting insurance is to ensure that the information collected is accurate and reliable.

I recommend: Financial Web provides further information about underwriting and the role of the insurance agent in this process.

Annuities

Annuities are investment portfolios that are paid to the investor over a specified period of time. Annuities are sold by insurance companies and are often part of retirement planning as they provide tax deferral and a fixed payment schedule. Some life insurance agents are licensed to sell these along with life insurance products.

I recommend: Investment FAQ provides a detailed description of annuities as they relate to insurance, as well as the differences between fixed and variable annuities.

Broker

Some life insurance agents can also act as a broker. This means that the agent acts on your behalf to search out the insurance arena to find the best coverage for you. A broker does not work with just one insurer, rather with many insurers and insurance products.

I recommend: The Princeton Review discusses insurance agents and brokers.

Captive agent

A captive agent is an insurance agent who works on the behalf of one insurance company. The insurance products he or she sells are from only one company, versus independent agents who might represent a number of insurance companies.

I recommend: InsureMe explains captive agents vs. non-captive agents in detail.

Chartered Life Underwriter (CLU)

Chartered Life Underwriter is a professional designation for life insurance agents, indicating that they have special training and knowledge in life insurance planning, taxation and investments.

I recommend: For an example of training for CLU designation, visit AB Training Center.

Financial planning

Many life insurance agents also refer to themselves as financial planners. Financial planning is the process of setting long-term plans for achieving financial goals. It can include investment strategies as well as insurance plans in order to protect assets.

I recommend: The National Association of Insurance and Financial Advisors gives a detailed description about the role of insurance in financial planning.